How Much Money Do Amazon Routes Make?
Amazon DSP Business Valuation: What Investors Need to Know
As e-commerce continues its rapid growth, Amazon Delivery Service Partner (DSP) routes have become an increasingly popular business model within the transportation and logistics space. For buyers and sellers alike, understanding how to value an Amazon DSP business is essential.
Whether you're entering the space or looking to scale, knowing where Amazon DSP route valuations stand—compared to other last-mile delivery businesses like FedEx Ground—is key to making informed investment decisions.
Two Core Valuation Methods for Amazon DSP Businesses
There are two standard methods for evaluating any transportation or logistics company:
Percentage of revenue: The gross revenue of the operation is assigned a percentage of the revenue as a traditional valuation metric.
EBITA Multiple: Currently, we see Amazon operations selling for around 35% of one year's annual EBITA (earnings before interest, taxes, depreciation) earnings.
With the multiples, we see in Amazon space valuations ranging from 2.2X to 3.4X the high-end multiple of one year’s annual EBITA earnings.
These figures position Amazon DSP businesses on the lower end of market valuation when compared to traditional FedEx P&D routes, which often sell for 70–100% of revenue or 4.5X to 5.5X earnings
Example Amazon DSP Valuation
Let’s say an Amazon DSP operation generates $4 million in annual revenue and maintains an average 13% operating profit. That’s over $500,000 in EBITDA.
At an average 2.7X multiple, that business would typically be valued around $1.35–$1.4 million.
For investors, that means buying into a high-revenue logistics business with significant cash flow at a lower market price than comparable opportunities.
Why Amazon DSP Routes Are a Smart Investment
If Amazon’s program follows a similar evolution to FedEx, valuations could rise significantly over time—making this a strategic early investment. While Amazon DSP routes may have lower multiples, they often offer:
High-volume operations
Strong recurring revenue
Scalable logistics models
Upside potential as the DSP program matures
Want to Learn More?
For a comprehensive understanding of Amazon DSP routes, consider enrolling in our Amazon Routes 101 Course. This course provides foundational knowledge to help you decide if investing in logistics routes aligns with your goals.
If you’re ready to explore available routes for sale, visit our Routes for Sale page.
